Senate Approves New Rental Law

Source: The Argentina Independent
By: Katie McGhee

The amendment aims to regulate rental contracts and control abuses by landlords and estate agents by limiting commissions and restricting price increases.

The bill, which was drafted by organisations for renters across the country, was presented by Senator Silvina Garcia Larraburu and reforms the Civil and Commercial Code by establishing guidelines for the negotiation of rental contracts. One of the chief regulations is the limit applied to price increases of rent, to become adjusted annually rather than more frequently by landlords. Furthermore, the rate of price increases will be restricted to an annual figure set by the government determined by a more realistic average based on changes to the both the rates of salary and inflation.

The bill also aims to lengthen the term of rent contracts from two years to a minimum of three years alongside regularising the commissions and guaranteeing deposits paid at the beginning of these terms. In May 2016 a proposal was passed by Inquilinos Agrupados and the Civil Association for Equality and Justice that demanded that real estate agencies stop charging two months commission during the signing of contracts, and since this was passed they have only been authorised to charge one month commission. This new law reiterates this, with the payment of a single month advance as commission and one for the deposit, which will be returned, updated in its value, at the end of the fixed contract. It also establishes that real estate commissions can be determined by the laws of each jurisdiction, and in the case that this isn’t regulated then it can never exceed the value of one month of rent. Also outlined is that any unexpected extra costs that incur during the time of the contract, for example necessary repairs to the building, are not the responsibility of the renter and are to be paid by the landlord alone.


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